Japanese engineering and electronics conglomerate Hitachi Ltd, though its subsidiary Hitachi Systems Ltd, has signed a share purchase agreement to acquire 76 per cent in Delhi-based Micro Clinic India Pvt Ltd for an undisclosed amount.
The deal is aimed to be completed by next month and post-acquisition, Micro Clinic will be renamed as Hitachi Systems Micro Clinic Pvt Ltd. Both the companies will work closely with the Hitachi Group companies in India to expand the IT services business in the country.
"By combining Hitachi Systems' advanced technological capabilities with Micro Clinic's human resources and robust customer and heterogeneous product partner platforms, we hope to create new value and supply unique services that will support customers' business innovation needs," said Tarun Seth, MD of Micro Clinic.
Amarchand & Mangaldas & Suresh A. Shroff Co acted as the legal advisor to Micro Clinic on this deal.
Established in 1993, Micro Clinic provides IT infrastructure by offering solutions in information infrastructure, availability solutions, security solutions and services & solutions. Along with group firm Micro Clinic Software India Pvt Ltd, it employs 650 people and reported net sales of Rs 76.9 crore for the year ended March 31, 2013.
"We will expand innovative IT services to all of India-services that will fuse Micro Clinic's business sites, and its abundant personnel, technologies and know-how, with Hitachi Systems' virtualisation and cloud services; managed services such as data centre monitoring and operations; and security services. In doing so, we seek to contribute to the development of India's economy, which continues to show remarkable growth," Naoya Takahashi, president and CEO of Hitachi Systems, said.
Hitachi Systems is into systems integration business, systems operation, monitoring and maintenance business, network services business and sale and development of information-related equipment and software.
It is targeting consolidated revenues of ¥500 billion and an overseas sales ratio of 10 per cent in fiscal 2015 under its medium-term management plan.
Its Tokyo-based parent Hitachi operates 11 business segments, including information & telecommunication systems, social infrastructure, high functional materials & components, financial services, power systems, electronic systems & equipment, automotive systems, railway & urban systems, digital media & consumer products, construction machinery and other components & systems.
Hitachi entered India in the 1930s. Currently, it has around 30 business units and 7,500 employees in the country. In addition to providing services in construction machinery and air-conditioning systems, the firm is expanding into information & telecommunication systems, power systems, industrial, transportation and urban development systems.
This marks its second inorganic expansion move in the country. Three months back it announced the acquisition of Sequoia-backed payment solutions firm Prizm Payment for $250 million.
(Edited by Joby Puthuparampil Johnson)